FIGURE 9.8 Risk Coefficients Incorrect Acceptance Coefficient Incorrect Rejection Coefficient Acceptable Level of Risk 1.0% 4.6 5.0 2.58 2.33 1.68 2.00 1.96 10.0 15.0 20.0 1.64 1.28 1.04 0.84 0.67 0.52 0.25 0.00 1.64 1.44 1.28 1.15 1.04 0.84 25.0 30.0 40.0 50.0 0.67 Required information [The following information applies to the questions displayed below) Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 9,300 receivable accounts with a total book value of $1,530,000. Robertson estimates the population's standard deviation to be equal to $23. After examining the overall audit plan, the auditors believe that the account's tolerable misstatement is $69,000, and that a risk of incorrect rejection of 10 percent and a risk of incorrect acceptance of 15 percent are appropriate. Use Figure 9.8. Assuming the following results: Book value of items in sample = $159 Average audited value of items in sample = $155 Standard deviation of sample = $28 Required: a. Use the ratio method to calculate: (The solution from 9-42 is required in order to complete 9-43.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) (1) Projected misstatement (2) Estimated total audited value b. Use the difference estimation method to calculate: (1) Projected misstatement (2) Estimated total audited value